15 Alarm Ringing: Nokia in 2010

15 Alarm Ringing: Nokia in 2010

Introduction

Operating in the turbulent and globalized business market require a well-prepared plan and vision in order to go ahead of the market and being the market leader, which would ensure the success and survival for the organization in long-term (Sadler and Craig, 2003). Failure to do so and the organization would see itself going bankruptcy in couple of years head. The case of Nokia is the typical example of the failure to catch the demand of the customers, to follow up the market and to struggle in the way to become powerful again. Nokia is well known about its products, which are mobile telephone and portable IT device. Used to be the market leader in the mobile phone industry, but the company now has been struggling in order to survive through the fast growing and many competitors of mobile phone industry. This report would invest the case study “Alarm ringing: Nokia in 2010”; analyze the situation and prospects for Nokia to be more competitive in the mobile phone market.

Nokia's mission and vision

The very famous vision statement of Nokia is “Connecting people”, which means that Nokia aims to connect people from different areas around the world by providing them the electronic devices that would facilitate connection (Nokia, 2012). By using the communication products in Nokia, customers would feel like they are connecting with people worldwide despite geographical disperse. Inspired by the vision of connecting people, the mission statement of Nokia is much more the same “to build great mobile products to enable billions of people everywhere to get connected” (Hill and Jones, 2012).

In additional, the mission statement might need to change so Nokia can get into this competitive industry. Connecting people, again, need to be perceived as something very basic at the moment. Smartphone would do more than that, and because of not being able to satisfy customers with the competitive market; Nokia has continued to decline and drop in the industry. Therefore, the mission statement is suggested to change to “to build the highest quality mobile phone that would satisfy the needs of communication and entertainment of billions of people.” This would allow Nokia to strategically re-position itself by launch out a new smartphone in the competitive market, to let them know that Nokie can do more than just connecting people.

Alarm In Nokia's Strategic Pursuits

The competitive forces model, a.k.a Porter's five forces model, was developed by Michael E. Porter in 1979 as the framework to analyzing the industry and developing relevant business strategy. The five forces in the framework have been designed in order to assess the intensity of competitiveness and the attractiveness of the market (Bamford and West, 2010). The attractiveness referred to this model is the overall profitability generated from the industry. As a most unattractive industry is monopoly where the total profit is the normal profit generated from one single company's operation. The five forces model is included: (i) the threat of substitute products, (ii) the threat of ...